Recommendation from Finance - Investments & Pharmaceuticals Sector

This section gives you some of the momentum stocks which are in buzz for past few days and are expected to give quick returns in a 15-day horizon.

HDFC ASSET MANAGEMENT COMPANY 

CMP -  Rs3,324.75
BSE CODE 541729
Volume 34,471
Face Value  Rs5
Target  Rs3,600
Stoploss  Rs3,100(CLS)

HDFC Asset Management Company Ltd. is an asset management company for the Housing Development Finance Corporation Limited (HDFC) Mutual Fund. Along with offering portfolio management solutions, the company also offers advisory services to foreign portfolio investors. On a quarterly consolidated basis, the total income grew by 11 per cent to  Rs592 crore in Q3FY20 from  Rs532.7 crore in Q3FY19. The closing AUM in the quarter ended December 2019 was  Rs3,68,900 crore, increasing by 12 per cent from a closing AUM of  Rs3,29,100 crore in the quarter ended December 2018. The company reported a net profit of  Rs352.5 crore in Q3FY20, increasing by 45 per cent from  Rs243.3 crore in Q3FY19. The company’s renowned brand franchise due to its strong parentage, strong distribution and consistent performance are expected to enable healthy AUM growth and maintain its market leadership. Thus, we recommend a BUY.

SANOFI INDIA LTD.
CMP -  Rs6,962.50
BSE CODE 500674
Volume 460
Face Value  Rs10
Target  Rs7,400
Stoploss  Rs6,600 (CLS)

Sanofi India Limited is engaged in the manufacture and sale of pharmaceutical products, thus providing medicines for the treatment of patients in various therapeutic areas, including cardiology, thrombosis, oncology, diabetes, central nervous system, internal medicine and consumer healthcare. The company operates in India as well as outside India. On a standalone financial front, the company reported net sales of  Rs779.10 crore for Q2FY20 which is an increase by 4.75 per cent compared to net sales of  Rs743.80 crore reported for Q2FY19. The PBDT for Q2FY20 stood at  Rs159 crore, registering degrowth of 25.53 per cent from  Rs213.50 crore for Q2FY19. The net profit rose by 6.21 per cent in Q2FY20 to  Rs126.60 crore from  Rs119.20 crore in Q2FY19. The key growth drivers for the company constitute of its insulin portfolio which is led by the flagship brand Lantus, next-generation insulin (Toujeo), Allegra and the recently launched Combiflam topical pain relief gel or spray. Hence, we recommend a BUY.